Vietnamese agribusinesses find opportunity in global trade uncertainty
Vietnamese agribusinesses find opportunity in global trade uncertainty
Vietnamese exporters have good chances to increase their market share in the US.
Vietnam’s agricultural sector is experiencing strong growth, prompting exporters to actively seek opportunities despite anticipated global market uncertainties in 2025, according to local insiders.
This proactive strategy is crucial as the global trade landscape in early 2025 remains uncertain, influenced by declining purchasing power, falling prices, new US tariff policies, the looming threat of trade wars, and increasing technical barriers.
Strategy adjustment amid global trade uncertainty
Vinaseed's seed and agro-processing industrial center in Dong Thap Province. Photo: PAN Group |
In response to these challenges, Vietnamese companies are adapting their strategies.
The PAN Group, a major player in the agricultural, forestry, and fishery sectors, is closely monitoring new policies from President Donald Trump to adjust its business plans for 2025.
Despite the uncertainties, the group expressed confidence during a February meeting with investors, projecting a 15-20% revenue increase in agriculture compared to 2024.
Vietnam Seed Group (Vinaseed), which specializes in plant seeds and rice, expects to expand its market share this year by offering high-quality rice varieties favored by consumers and leveraging new proprietary products with high-profit margins.
Another PAN subsidiary, Sao Ta Foods JSC (FMC), plans to continue exporting processed shrimp to Japan and the EU, capitalizing on Vietnam's existing free trade agreements (FTAs).
Khang An Foods, a member of FMC, has secured a substantial order from Costco in the US, providing a positive growth impetus for FMC in 2025.
Meanwhile, Ben Tre Seafood Import-Export Company (ABT), also under PAN, will expand its catfish product line in the Japanese market.
Rice remains a key export for Vietnam, but rice exporters are having a hard time with the sharp drop in export prices, which range from US$150 to $260 per ton, depending on the variety. Local insiders warned that exporters who focus on a limited number of large markets face significant risks. Exporters are being encouraged to diversify their markets to counteract falling rice prices and increase their competitiveness.
Pham Thai Binh, Chairman of Trung An High-Tech Farming JSC, said that in order to expand into new markets and attract new customers, high-quality rice products must meet specific standards and unique requirements of each market.
He advised that building a strong brand for Vietnamese rice and demonstrating its quality is crucial to responding to diverse market conditions.
According to the Food and Agriculture Organization (FAO), global rice prices are expected to decline in 2025 due to ample supply from major producing countries and favorable weather conditions. The shift from El Nino to La Nina is expected to create better growing conditions in Vietnam's rice-producing regions, increasing yields and supply. In addition, India's decision to lift its ban on rice exports is expected to contribute to an increase in global rice exports, which are projected to reach 56.3 million tons in 2025.
Given these forecasts, rice exporters are urged to closely monitor market conditions and adapt quickly to mitigate risks while enhancing their competitiveness for strong growth this year.
Compliance key to export success
Seafood processing for export at Godaco Company in Tien Giang Province. Photo: Viet Hung/The Hanoi Times |
Le Hang, Communications Director of the Vietnam Association of Seafood Exporters and Producers (VASEP), emphasized the importance of finding opportunities amid the challenges posed by new US tariff policies and ongoing US-China trade tensions.
She said that there are still chances for Vietnamese exporters to increase their market share in the US.
American companies may turn to Vietnam as a reliable seafood supplier to offset shortages from China. US companies, along with those in Japan and Canada, are likely to seek processing partners in Vietnam for exports to the US, Hang said.
"This is an opportunity for Vietnamese seafood companies," she said. "However, it's critical for them to maintain high-quality and transparent production processes, especially in terms of traceability. Compliance with country-of-origin regulations and transparency in the supply chain will help maintain competitive advantages and protect international reputations."
Opportunities are particularly evident for Vietnamese catfish, which could largely take over Chinese tilapia market share in 2025 due to tariffs on US imports from China. The US imposing an additional 10% tariff on Chinese imports could drive up tilapia prices and weaken US demand, creating more opportunities for Vietnamese catfish, the communications director said.
Meanwhile, the PAN Group is closely monitoring US President Donald Trump's new policies to adjust its business plans for 2025.
The fruit and vegetable sector is targeting an export target of $8 billion this year. To achieve this goal, local exporters must comply with pesticide residue regulations set by importing countries. Specifically, Vietnam's durian exports to the EU will face an increase in border inspections from 10% to 20% due to previous non-compliance, said Ngo Xuan Nam, Deputy Director of Vietnam's SPS.
In addition, the inspection rate for Vietnamese dragon fruit is 30%, while the inspection rate for chili peppers and okra is 50%.
Nguyen Dinh Tung, CEO of Vina T&T, stressed the importance for fruit exporters to comply with regulations and improve preservation technologies. Furthermore, ongoing negotiations by the Ministry of Agriculture and Rural Development and the Ministry of Industry and Trade aim to introduce new fruits for annual export, creating opportunities for market diversification, he told VnBusiness.
